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ROMCARBON SA - ROCE

Preliminary financial results - Separate IFRS 2019

Release Date: 2/14/2020 8:00:02 AM

IRIS Code: A15C8

SC ROMCARBON SA

132, Transilvaniei Street, 120012, Buzau, Romania

Commerce Registry Number : J10/83/1991

Sole Registration Number : 1158050

VAT Number: RO1158050

Tel: +4 0238 711.155

Fax: +4 0238 710.697, 723.115

E-mail: investor.relations@romcarbon.com

Website: www.romcarbon.com

Share Capital: 26.412.209,60 lei                                         

Number of Shares: 264.122.096                 

 

 

Announcement

 

Romcarbon SA, one of the major plastic packages producers (Polystyrene, Polypropylene, Polyethylene) in Romania and the most important romanian producer of regenerated polymers & compounds, recorded in 2019 a net profit of LEI 319,165 decreased by LEI 4,481,189 (-93%) as compared with the same period of 2018, and a value of net sales of LEI 183,857,280 decreased by 8% as compared with the previous year (2018: LEI 198,460,719).

EBITDA Operational recorded in the reported period an amount of LEI 12,316,630 with an increase of LEI 932,387 (+8%) as compared with the same period of 2018 as a result of the investments made in the previous years targeting the increase of productivity and a decrease of production costs.

Among the items that negatively impacted the result of 2019 were the loss recorded from the exchange rate differences as a result of the revaluation in lei of the assets and liabilities expressed in foreign currency, - LEI 1,061,793 (2018: + LEI 88,767), decrease of « Investment income » with LEI 1,513,011 in 2019 as compared with the previous year (-44%) - this indicator comprises also the revenues from dividends received from the company’s subsidiaries which in 2018 amounted LEI 1,117,270, but in 2019 its value was 0 – , the loss arising on changes in fair value of investment property recorded at 31.12.2019 as a result of the revaluation of these assets, - LEI 429,524 (2018: + LEI 307,659) but also the decrease of the gain on disposal of non-current assets, investment property and non-current assets held for sale, recording in 2019 an amount of LEI 33,366  (2018 : + LEI 2,720,953).

 

Regarding the decrease in Net Sales, a significant influence had Plastics processing sector, by the Polyethylene products group (- LEI 5,498,140, -17%, as compared with 2018), where the goal was to optimize clients portfolio by giving up those orders which, either due to quantity or due to price weren’t efficient, action which finally led to a decrease in sales for this group of products but in the same time to obtaining an improvement of EBITDA Operational.

Within this group, the management aims to identify an optimized structure of production (in this sector are manufactured a large range of products – foils, bags, small bags, covers – both from virgin polymers and regenerated polymers) which will lead to increase in sales and in the same time improve results of the sector.

 

An aspect that must be highlighted is the beginning, in the last months of 2019, of the production of biodegradable small bags, Romcarbon obtaining for these products the certification regarding the biodegradability issued by TUV Austria.

The share of this subgroup of products in the total sales of the group in 2019 was relatively small (1.24%), but for 2020 it is expected to reach 13%, being one of the growth engines of the sector.

 

Another sector that had an influence on the decline in net sales in 2019 was Regenerated polymers & compounds (-LEI 3,469,861, -10%, as compared with 2018), especially due to the decrease in price of virgin polymers on the international markets which led to a decrease of the demand for recycled polymers, some plastic processors prefered to use virgin raw material.

This situation is a temporary one, the demand for recycled raw materials will increase in the next period with the CE regulations for increasing the quantities of recycled plastic in the European Union.

It should be pointed out that 41% of the sales of this sector are made on foreign markets, among the countries where the products are sold are counted Italy, Bulgaria, Germany, Hungary.

 

The evolution of the main indicators is shown in the following table:

Indicator

2017

2018

2019

2019 vs. 2018

Revenue (Sales)

195,140,695

198,460,719

183,857,280

(14,603,439)

-7%

Investment income

3,987,533

3,464,433

1,951,422

(1,513,011)

-44%

EBITDA

15,768,480

14,702,841

10,419,425

(4,283,416)

-29%

EBITDA Operational

12,182,514

11,384,242

12,316,630

932,387

8%

Net profit

4,798,066

4,800,354

319,165

(4,481,189)

-93%

Non-Current assets

210,024,646

170,408,687

163,581,986

(6,826,701)

-4%

Current assets

59,667,443

82,932,101

82,618,899

(313,202)

0%

Total Equity

133,121,619

137,190,295

136,929,309

(260,986)

0%

Total Liabilities

136,570,470

116,150,493

109,271,576

(6,878,917)

-6%

Debt ratio

51%

46%

44%

-1%

-3%

Current liquidity

79%

120%

111%

-9%

-8%

 

About Romcarbon SA

 

The company has the following fields of activity:

Ø  Plastic processing sector (56% of 2019 sales):

·         Polyethylene processing (virgin polymers and regenerated): bags, small bags, covers, general use foil, thermo foil;

·         Polystyrene processing: trays for the food industry (standard, absorbent, catering) and products for constructions as plates and rolls;

·         Polypropylene processing: laminated and non-laminated woven bags in different sizes for packaging products used in agriculture, food and chemical industry;

Ø  Regenerated polymers and compounds (17% of 2019 sales);

Ø  Other production sectors (3% of 2019 sales): automotive and industrial filters, active carbon, breathing protective equipment, PVC traffic base;  

Ø  Other activities (24% of 2019 sales): sales of goods, services, other sales.

 

 

Please note that the Preliminary Separate Financial Statements for the period ended December 31, 2019 have not been audited.

 

For further information please access the attached pdf files.

 

 

                    

 



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